WORLD TRADE  
ORGANIZATION  G/LIC/19 
11 November 2008 
 (08-5446) 
Committee on Import Licensing  
  
 
REPORT TO THE COUNCIL FOR TRADE IN GOODS 
ON CHINA'S TRANSITIONAL REVIEW  
 
 
1. The Committee on Import Licensing, at its meeting on 20 October 2008, carried out the 
seventh transitional review of China pursuant to Pa ragraph 18 of the Protocol on the Accession of the 
People's Republic of China (WT/L/432).  2. Written questions in connection with the tr ansitional review of China's import licensing 
system were submitted in advance by the United St ates. This submission was circulated in document 
G/LIC/Q/CHN/23.   
 3. The information provided by China to the Committee on Import Licensing for its meeting on 
8 October 2007, was circulated in document G/LIC/W/33.    4. The statements made at the meeting, wh ere discussions under the transitional review took 
place, are reflected in the minutes of the meeting (G/LIC/M/28, paragraphs 3.1-3.7).  The relevant 
paragraphs which reflect this discussion are annexed. G/LIC/19 
Page 2  
 
  3. Seventh Transitional Review Under Paragr aph 18 Of The Protocol On The Accession 
Of The People's Republic Of China (WT/L/432). 
 
3.1 The Chairperson
 recalled that the sixth transitional review of the implementation by China of 
the WTO Agreement and of the related provisions of the Protocol, under paragraph 18 of the Protocol 
of Accession of China (WT/L/432), had been carried out in 2007 by the subsidiary bodies of the 
WTO, including the Committee on Import Licensi ng, which had a mandate covering China's 
commitments under the WTO Agreement or China's Pr otocol of Accession.  The Committee's report 
to the Council for Trade in Goods on that review had been circulated in document G/LIC/17.  The 
Committee would conduct the seventh transitional review at the present meeting.  He also informed 
the Committee that since the last meeting, the Secretariat had received one submission from the 
United States (G/LIC/Q/CHN/23) containing questi ons on China's import licensing procedures.  The 
Secretariat had also received, afte r the airgram and its addenda conve ning this meeting were issued, a 
communication from China containing information re quired by paragraph IV:3 of Annex 1A of the 
Protocol of Accession which has been circulated in document G/LIC/W/33. 
 
3.2 The representative of the People's Republic of China  informed the Committee that no major 
changes had occurred on China's import licensing regime since 2007 and that all China's related 
import licensing issues could be found in China' s Foreign Trade and Economic Cooperation Gazette 
as well as in the website of MOFCOM, China's Ministry of Commerce.  
3.3. The representative of the United States,
 referring to the questions posed to China under the 
transitional review (document G/LIC/Q/CHN/23) , informed the Committee that on 5 August 2008 
China’s General Administration of Quality Supe rvision, Inspection and Quarantine (AQSIQ) had 
issued Notice No. 87-2008 announcing the establishm ent of a new requirement for cotton foreign 
exporters which might obtain, be fore engaging in the export of cotton to China, a registration 
certificate from AQSIQ or face preshipment inspection requirements.  This notice established a 
starting date for the acceptance of registration a pplications by foreign exporters of cotton of 
15 September 2008 and set a deadline of 15 March 2009,  by which time consignees might provide the 
registration certificate of a foreign exporter of cotton at the port of entry of a cotton shipment.  AQSIQ Notice No. 87-2008 also imposed an obliga tion for consignees to include a preshipment 
inspection clause in the contract or purchase agreement for importation of cotton from non-registered 
foreign suppliers, and described a quality credit appraisal system for implementation by AQSIQ.   
 3.4 The representative of the People's Republic of China ,
 in response to the concerns raised by 
the United States, informed the Committee that Ch ina imported more than 3 million tonnes of cotton 
each year whose total value exceeded US$4 billion a nd that the inferior quality of some imported 
cotton had been a problem for some time.  Chinese importers and users of th is cotton were seriously 
injured due to quality problems such as plant disease s, insect pests, hazardous substances, poor quality 
and shorter wheat.  The figure for 2006 showed th at this was the case for almost 70% of cotton 
imports inspected.  Therefore, China had decide d to implement the registration requirement from 
AQSIQ for quality purposes to preventing inferior cotton from entering into China and to put an end to deceptive practices.  This registration did not co nstitute a trade barrier and would serve to protect 
the legitimate activities of fair enterprises.  The complete text of this registration requirement, 
currently available only in Chinese, could be consu lted at the website of AQ SIQ (www.aqsiq.gov.cn).  
With regard to the question concerning the qualif ication criteria in entering the certificate, the 
representative of China stated that it was advisable to  refer to Article I of the registration requirement 
which provided specific details.  Concerning the designation of an organization for pre-shipment 
inspection, the TBT National Enquiry Point should be  approached by interested Members via e-mail, 
telephone or fax (www.aqsiq.gov.cn; Te lephone 8861082260618; or Fax 8601082262448). 
 3.5 The Committee took note
 of the statements made. 
  G/LIC/19 
 Page 3 
 
 
  3.6 The Chairperson  suggested that, to conclude th e Seventh Transitional Review under 
Paragraph 18 of the Protocol of Accession of th e People's Republic of China, a factual report on 
China's transitional review be submitted to the Coun cil for Trade in Goods (CTG).  As had been done 
previously, this factual report would refer to the rele vant paragraphs of the minutes of this meeting as 
well as the oral and written comments and questions submitted to China, and the information received 
from China.  The relevant paragraphs of the minut es which reflected the di scussion would be annexed 
to this report.    3.7 The Committee so agreed
.  The report to the CTG on the seventh transitional review was 
circulated in document G/LIC/19. 
 
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